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DeVere UK losses deepen amid FCA probe

DeVere UK losses deepen amid FCA probe

DeVere UK made a loss of more than £1.2m in 2017 as it faced "significant costs" associated with an ongoing investigation by the Financial Conduct Authority.

The company's losses increased by more than 40 per cent from the losses of £864,714 it made during 2016.

Last year DeVere UK agreed to "immediately cease" providing third party companies with transfer value analysis reports after intervention by the FCA.

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The international advice firm was also subject to a section 166 notice, which means an independent "skilled person" would review the firm’s activities, paid for by DeVere.

DeVere UK said its decision to discontinue its pension report-writing service had led to turnover falling from £3.08m in 2016 to £2.14m in 2017.

In its results for 2017, DeVere UK said the skilled person report had been completed and the recommendations had been implemented.

But DeVere UK added: "In January 2018 the company was advised by the FCA that their investigation into a discrete area of the business would continue.

"The company continues to work closely with the regulator in order to fulfill our obligations and to be supportive, open and transparent, in alignment with the core beliefs of the business."

DeVere UK added the FCA review would involve funding which the company would not be able to generate from its ongoing business activities, meaning it would be reliant on the support of its parent company.

It confirmed the DeVere Group would cover the costs of the FCA review, with £876,500 already provided during 2017.

DeVere UK said it had been seeking efficiencies through the "adoption of systems and controls", with support functions rationalised and streamlined into a new centre in the East Midlands.

The company added it had been hiring paraplanners to allow its advisers to spend more time with their clients.